Foreign Investment in Brazilian Real Estate Higher Than Ever | Obelisk International News

While real estate investment in many countries flounders, foreign interest in Brazilian property has never been higher. 2011 saw record investment in Brazilian real estate and analysts expect more of the same this year.

According to the Brazilian investment agency ADIT Invest, financial transactions made by foreigners for real estate in Brazil rose by 50% in 2011. Top Rio de Janeiro property agents report that purchases by foreigners made up 30% of their business last year with the average property costing around R$2 million. Real estate professionals in Sao Paulo echo this and say that most foreigners are buying up property in Brazil for investment.

All the Right Criteria

Brazilian real estate is ticking more and more boxes for more and more foreign investors. At the top of the list sits a stable economy, particularly in today’s turbulent economic times. “The watchword for foreign investment in Brazil appears to be economic stability,” comments Gary Hardacre, CEO of Obelisk International, one of the main foreign companies investing in property in north east Brazil.

“Because Brazil has been virtually unaffected by the recent uncertainty and is presenting strong growth figures for 2012, more investors are turning to Brazil,” says Mr Hardacre. Predicted 4% GDP growth and record unemployment levels lead Obelisk International along with other foreign companies to expect to see more interest in Brazilian investment this year.

Big domestic drivers also form part of the attraction of investment in real estate in Brazil. These drivers include massive demand for housing from the ever-growing middle classes, whose greater purchasing power means thousands aspire to getting a foot on the property ladder. This demand is another major reason behind the current popularity of investment in Brazilian property.

Foreign Real Estate Companies Expanding

The tandem of strong domestic demand and increasing foreign interest has led many Brazilian real estate companies to expand their business in Brazil. Companies are increasingly providing websites in three languages – Portuguese, Spanish and English – to cater for new foreign investors and many agencies are opening offices outside Brazil.

And in turn, foreign companies dedicated to real estate in Brazil are strengthening their presence. According to Virginia Duailibe, President of the Brazilian Real Estate Association, “many large real estate multi-nationals such as CBRichard Ellis, Jones Lang LaSalle and Colliers International are expanding operations in Brazil”.

On the back of the big demand from the domestic market and foreign investors, analysts are convinced that 2012 will be another promising year for Brazilian real estate investment.

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
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Spending on Brazilian Real Estate Rises | Obelisk International News

Obelisk International News - Consumer spending looks set to reach record levels this year in Brazil with families spending over a quarter of their income on expenses relating to property. This confirms the potential for strong growth in the Brazilian real estate sector.

A recent survey by IPC Maps reported in Exame magazine finds that all social classes in Brazil are spending more. Total expenses on consumer goods from basic foodstuffs to property in Brazil is expected to reach R$2.5 trillion this year, a significant increase on last year.

A breakdown of spending shows that housing expenses account for a large proportion of family income. Brazilian families spend around 26% of their income on their homes with food and beverages the next largest expenditure (17%).

Population Pyramid Points to Boom in Real Estate

The IPC survey takes a look at the Brazilian population and finds Brazil has a young and growing population, two factors that explain the current boom in the Brazilian property market. They also point to further massive growth in the development of real estate as Brazil strives to provide housing for new households.

According to the survey, almost half of Brazil is aged between 20 and 49. In the younger age bracket (10 to 19 years of age), there are 34.6 million Brazilians. Between them, these two population groups make up the main demand for property in Brazil and will continue to do so at least until 2030.

Middle Classes Drive Spending

Brazil has one of the world’s fastest growing middle classes. According to the IPC Maps survey, the middle class (Class C) grew by an amazing 20% last year. This massive addition to the middle classes translates into bigger spending power – unsurprisingly, Class C expenditure will rise by 19% this year.

Class C makes up almost 50% of the population and their over 24 million households are a major focus of investment in Brazil. Numerous multi-nationals – Whirlpool, Nestle and Ford – have tapped into this potential with spectacular results for their sales. Banks and developers of Brazilian real estate have also been quick to realise this middle class potential.

Big Spenders in North East Brazil

The survey also looks at geographical trends in spending by consumers in Brazil and finds that trends are changing, reflecting the new importance of inland and northern regions. Brazil’s biggest spenders are in the south east, which accounts for 52.2% of the total. Second in the ranking comes the north east, confirming this area’s potential for growth and Brazilian investment.

Obelisk International recognises the power of the middle classes in Brazil, particularly Class C, the main market focus of investment in Brazil social housing and an investment priority for Obelisk International. The growth of Class C, both in size and purchasing power, ensures that Brazilian real estate investment potential will be realised for many years to come.

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
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Obelisk Announces Next Minha Casa Minha Vida Investment

On the back of its resounding success in investments in the Brazilian Minha Casa Minha Vida programme, Obelisk is pleased to announce its next social housing project.

Minha Casa Minha Vida 4 Phase II is the latest in Obelisk’s Brazilian investments. And like Obelisk’s other social housing projects, it offers exceptionally high returns over a short time frame.

With a minimum capital investment of €200,000, investors in this latest Brazilian real estate project will receive 170% returns in 24 months. This equates to 35% profit a year, one of the highest rates available for short-term investment. The 70% profit is returned to the investor as a dividend, which has the added advantage of being exempt from tax in Brazil.

The latest Minha Casa Minha Vida (MCMV) development is in a highly sought-after area in the up-and-coming city of Parnamirim. All licences – including approval from Caixa bank– are in place for the development and construction on MCMV 4 Phase II began in January this year.

Minha Casa Minha Vida is the Brazilian government’s flagship social housing programme. Designed to reduce the serious shortage of Brazilian Real Estate, MCMV is building 3 million homes by the end of 2014. In December 2010, the programme reached its target of 1 million properties and with government commitment and finance in place, the second stage of 2 million homes is already well underway.

The entire MCMV programme is financed by the government-owned bank, Caixa, one of the largest in Latin America and a giant in the Brazil mortgage market (Caixa has 76.21% of the home loans market). All MCMV developments must be approved by Caixa whose finance provides funds for development and mortgages.

Investment in Minha Casa Minha Vida with Obelisk International comes with full peace of mind. As well as the security of investment in a government-backed programme financed by a government-owned bank, investment in MCMV 4 Phase II is guaranteed through contract. Obelisk believes there are few other capital investments on the market offering security at so many levels.

Along with this peace of mind and 170% returns in just two years, investors in this particular sector of Brazilian real estate also have the satisfaction of knowing that their capital is helping Brazilian families fulfil a lifetime dream of owning their own home. And investments do not come better than that.

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.